Tax Credits for Renewable Chemical Production and Facility Investments.
This Act introduces new tax credits aimed at incentivizing companies that produce chemicals derived from renewable biomass and invest in related production facilities. The goal is to boost domestic manufacturing of sustainable materials, reduce reliance on fossil fuels, and stimulate job creation in the biochemical sector. The total amount of available credits is capped at $500 million and allocated based on criteria emphasizing innovation and energy efficiency.
Key points
Establishment of two tax credits: a 15% production credit based on the sales price of renewable chemicals, and a 30% investment credit for new production facilities.
Credits apply only to chemicals produced in the US, containing at least 95% biobased content, and not used for food, feed, fuel, or pharmaceuticals.
A national cap of $500 million is set for the total allocated credits, distributed based on criteria like job creation and advancement of sustainable chemistry.
The credit allocation program is set to terminate five years after the Act's enactment.
Status:
Introduced
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